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Strategies & Market Trends : Three Amigos Stock Thread

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To: Sergio H who wrote (14950)4/8/1999 3:18:00 PM
From: djj  Read Replies (3) of 29382
 
Secondary stock offering prices...
Can anyone tell me (or point me to a reference) how a sceondary stock offering works?
I have info about an upcoming offering of stock for $5 while the current share price is only $1 1/4.
Who would pay 5 when they can get it for 1?
Also what happens to the price of current shares?

Thanks
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